Jerry Samet
06-30-2022, 06:37 PM
The market had a rough session today. The major averages opened with large losses and after declining more found a bottom and started to rally. They almost got back to even on the day and then started selling off. The losses were significant but all the major averages finished in the upper half of their trading ranges. The COMPQ and the NDX fell 1.33% each. The SPX declined .88%. Volume was slightly higher across the board. This combined with the price declines was enough for a new distribution day on all the major averages. Leading stocks were lower as well. The leaders index fell 2.24% on the day, mostly due to weakness in energy stocks. The index closed in the upper half of its trading range on higher and slightly above average volume. It was another overall negative session today. The market had large losses early but managed to recover most of them in what would be an encouraging reversal. Late selling came in and the major averages finished with meaningful losses. The market continued its weak action and it looks like the positive action of last week was just a flash in the pan. All bear markets have short sharp rallies that get everyone all excited and generate talk of a bottom. This looks like another. Today is the last trading day of the month and the first half. The good news is that the monthly Coppock on the COMPQ got down to single digits this month and the SPX and the INDU will join it near or below zero in the next month or two. This will set up a buy signal that will tell us when the bear market is over and a new bull is starting. At best that will likely be late this year, but it may go into early next year, depending on how deep this bear eventually goes. There will be no update tomorrow. I hope everyone has a good 4th of July weekend. Jerry